Wednesday, July 22, 2015

"Apple should consider buying Tesla" - Gene Munster

REUTERS/Kevin LamarqueApple CEO Tim Cook listens to U.S. President Barack Obama speak at the Summit on Cybersecurity and Consumer Protection at Stanford University in Palo Alta, California February 13, 2015.

Piper Jaffray's Gene Munster says Apple should consider buying Tesla.

"The big thing they could buy that I would be impressed with is Tesla," Munster said when asked what Apple should do with its $203 billion in cash.

For the past few months, reports have indicated that Apple is planning to build its own electric car. But Munster believes that since Tesla is such a leader in that space, buying Tesla could be a smart move for Apple in the long term.

"To me, when you think about that absurd amount of cash, you have to go after opportunities," he said. "And I think automotive fits within that camp."m"Given Apple's DNA, it probably makes sense for them to just develop something on their own," Munster said. "If they would go the Tesla route, and if Elon Musk would step aside, which those are two big ifs, then it would make structural sense for them to do that."